Please carefully review the information provided on your 2017 Ownership Schedule. If you

Transcription

1 SAMPLE UNIT K PENNSYLVANIA AVENUE NW SUITE 220 SOUTH WASHINGTON, DC Dear Unitholder, The Carlyle Group L.P % Series A Preferred Units (NASDAQ: TCGP) is pleased to enclose your 2017 U.S. tax package. As a TCGP Unitholder you may be subject to U.S. federal, state and local income tax reporting in jurisdictions where you are a resident. Non-U.S. Unitholders may be subject to U.S. tax withholding and U.S. income tax reporting. Enclosed please find the following schedules: Schedule K-1 (Form 1065) Supplemental Information Ownership Schedule Sales Schedule (if applicable) IRS Partner s Instructions for Schedule K-1 (Form 1065) Please carefully review the information provided on your 2017 Ownership Schedule. If you determine any of the information to be incomplete or inaccurate, please contact Carlyle's Tax Package Support by June 29, 2018 at (855) , or request changes on our Tax Package Support website by clicking the Update Ownership Information icon under Actions. The enclosed 2017 IRS Partner s Instructions for Schedule K-1 (Form 1065) along with a summary of Frequently Asked Questions (FAQs) are also available on our Tax Package Support website. The IRS instructions and FAQs are provided for your general guidance and are not intended to be, nor should they be, construed as tax advice. The information contained in your tax package is based on existing laws and regulations as interpreted by our general partner. Prior to undertaking any tax filing, you should consult with your personal tax advisor with respect to the information provided in this tax package. If you have any questions regarding your 2017 tax package, please contact our Tax Package Support Service at (855) , available from 8 a.m. to 5 p.m. (CST) Monday through Friday. Sincerely, The Carlyle Group L.P. K-1 Account Number: K-1 Account Number:

2 DRAFT K-1. Values not final. Schedule K-1 (Form 1065) 2017 Department of the Treasury Internal Revenue Service For calendar year 2017, or tax year Part III Final K-1 Amended K OMB No Partner s Share of Current Year Income, Deductions, Credits, and Other Items 1 Ordinary business income (loss) 15 Credits beginning / / 2017 ending / / Partner s Share of Income, Deductions, Credits, etc. See back of form and separate instructions. A B C D E F Part I Information About the Partnership Partnership s employer identification number Partnership s name, address, city, state, and ZIP code THE CARLYLE GROUP L.P % SERIES A PREFERRED UNITS IRS Center where partnership filed return e-file X Check if this is a publicly traded partnership (PTP) Part II Information About the Partner Partner s identifying number Partner s name, address, city, state, and ZIP code SAMPLE UNIT K PENNSYLVANIA AVENUE NW SUITE 220 SOUTH WASHINGTON, DC Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 7 Royalties 8 Net short-term capital gain (loss) 9a 9b 9c Net long-term capital gain (loss) Collectibles (28%) gain (loss) Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 16 Foreign transactions A VARIOUS B 3, C 3, PENNSYLVANIA AVE NW STE 220 S 20 D 229 WASHINGTON, DC b Qualified dividends 9 0 2, Alternative minimum tax (AMT) items 18 Tax-exempt income and nondeductible expenses G General partner or LLC member-manager Limited partner or other LLC member H X Domestic partner Foreign partner I1 I2 J K What type of entity is this partner? If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here Partner s share of profit, loss, and capital (see instructions): Beginning Ending Profit % % Loss % % Capital % % Partner s share of liabilities at year end: Nonrecourse $ Qualified nonrecourse financing. $ Recourse $ X Individual Other income (loss) A* STMT F* STMT 12 Section 179 deduction 13 Other deductions 14 Self-employment earnings (loss) 19 Distributions A 3, Other information A 563 V 0 L M Partner s capital account analysis: Beginning capital account... $ 0 Capital contributed during the year $ 250,000 Current year increase (decrease). $ 3,753 Withdrawals & distributions.. $ ( ) Ending capital account.... $ X Tax basis GAAP Section 704(b) book Other (explain) Did the partner contribute property with a built-in gain or loss? Yes X No If Yes, attach statement (see instructions) 3, ,000 *See attached statement for additional information. For IRS Use Only For Paperwork Reduction Act Notice, see Instructions for Form Cat. No R Schedule K-1 (Form 1065) 2017

3 Schedule K-1 (Form 1065) 2017 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form For detailed reporting and filing information, see the separate Partner s Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is Code Report on passive or nonpassive and enter on your return as follows. L Empowerment zone Report on employment credit Passive loss M Credit for increasing research Passive income Schedule E, line 28, column (g) activities Nonpassive loss See the Partner's Instructions N Credit for employer social Nonpassive income Schedule E, line 28, column (j) security and Medicare taxes 2. Net rental real estate income (loss) O Backup withholding 3. Other net rental income (loss) P Other credits Net income Schedule E, line 28, column (g) Net loss 4. Guaranteed payments Schedule E, line 28, column (j) 5. Interest income Form 1040, line 8a 6a. Ordinary dividends Form 1040, line 9a 6b. Qualified dividends Form 1040, line 9b 7. Royalties Schedule E, line 4 8. Net short-term capital gain (loss) Schedule D, line 5 9a. Net long-term capital gain (loss) Schedule D, line 12 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 9c. Unrecaptured section 1250 gain 10. Net section 1231 gain (loss) 11. Other income (loss) Code A Other portfolio income (loss) B Involuntary conversions C Sec contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Cancellation of debt Form 1040, line 21 or Form 982 F Other income (loss) 12. Section 179 deduction 13. Other deductions A Cash contributions (50%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) See the Partner s E Capital gain property to a 50% Instructions organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense Form 4952, line 1 I Deductions royalty income Schedule E, line 19 J Section 59(e)(2) expenditures K Deductions portfolio (2% floor) Schedule A, line 23 L Deductions portfolio (other) Schedule A, line 28 M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29 N Educational assistance benefits O Dependent care benefits Form 2441, line 12 P Preproductive period expenses Q Commercial revitalization deduction from rental real estate activities See Form 8582 instructions R Pensions and IRAs S Reforestation expense deduction T Domestic production activities information See Form 8903 instructions U Qualified production activities income Form 8903, line 7b V Employer s Form W-2 wages Form 8903, line 17 W Other deductions 14. Self-employment earnings (loss) Note: If you have a section 179 deduction or any partner-level deductions, see the Partner s Instructions before completing Schedule SE. A Net earnings (loss) from self-employment Schedule SE, Section A or B B Gross farming or fishing income C Gross non-farm income 15. Credits A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(j)(5)) from post-2007 buildings D Low-income housing credit (other) from post-2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 1040, line 73; check box a I Biofuel producer credit J Work opportunity credit See the Partner's Instructions K Disabled access credit 16. Foreign transactions A Name of country or U.S. possession B Gross income from all sources Form 1116, Part I C Gross income sourced at partner level Foreign gross income sourced at partnership level D Passive category E General category Form 1116, Part I F Other Deductions allocated and apportioned at partner level G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income I Passive category J General category Form 1116, Part I K Other Other information L Total foreign taxes paid Form 1116, Part II M Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions 17. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment B Adjusted gain or loss See the Partner s C Depletion (other than oil & gas) Instructions and D Oil, gas, & geothermal gross income the Instructions for E Oil, gas, & geothermal deductions Form 6251 F Other AMT items 18. Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income C Nondeductible expenses 19. Distributions A Cash and marketable securities B Distribution subject to section 737 C Other property 20. Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 D Qualified rehabilitation expenditures (other than rental real estate) E Basis of energy property F Recapture of low-income housing credit (section 42(j)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 H Recapture of investment credit See Form 4255 I Recapture of other credits J Look-back interest completed long-term contracts See Form 8697 K Look-back interest income forecast method See Form 8866 L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(l)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures S CCF nonqualified withdrawals T Depletion information oil and gas U Reserved V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Net investment income Z Other information See the Partner s Instructions

4 THE CARLYLE GROUP L.P % Series A Preferred Units 2017 SCHEDULE K 1 SUPPLEMENTAL INFORMATION PAGE SCHEDULE K-1, PART III DETAIL 11A1 11A2 11F1 11F2 Foreign Currency Gain/(Loss) - IRC Section 987 Foreign Currency Gain/(Loss) - IRC Section 988 Other Income/(Loss) Subpart F Income FOREIGN QUALIFIED DIVIDENDS YOUR SHARE OF FOREIGN QUALIFIED DIVIDENDS INCLUDED ON LINE 6B IS $ 8 UBTI INFORMATION IF YOU ARE A TAX EXEMPT ENTITY, YOUR SHARE OF UNRELATED BUSINESS TAXABLE INCOME IS REPORTED ON LINE 20V. NET INVESTMENT INCOME ABSENT MATERIAL PARTICIPATION IN THE OPERATIONS OF TCGP OR ANOTHER EXCEPTION, TCGP EXPECTS THAT ALL OF THE ITEMS OF GROSS INCOME AND GAINS REPORTED TO YOU ON THIS SCHEDULE K-1 WOULD BE CONSIDERED NET INVESTMENT INCOME FOR PURPOSES OF IRC SECTION DIVIDENDS RECEIVED DEDUCTION YOUR SHARE OF DIVIDENDS FROM DOMESTIC CORPORATIONS ELIGIBLE FOR THE 70% DIVIDENDS RECEIVED DEDUCTION INCLUDED ON LINE 6A IS $ 1 INCOME SUBJECT TO WITHHOLDING UNDER IRC SECTION 1441 IF YOU ARE A FOREIGN PERSON, YOU MAY HAVE RECEIVED IRS FORM 1042-S, FOREIGN PERSON S U.S. SOURCE INCOME SUBJECT TO WITHHOLDING. PLEASE FOLLOW THE INSTRUCTIONS FOR THAT FORM. INFORMATION REGARDING PASSIVE FOREIGN INVESTMENT COMPANIES ( PFIC ) THE CARLYLE GROUP L.P. HAS MADE TIMELY IRC SECTION 1295 QUALIFIED ELECTING FUND ( QEF ) ELECTIONS WITH RESPECT TO ITS INVESTMENTS IN VARIOUS PFICS. YOUR SHARE OF THE ORDINARY EARNINGS AND NET CAPITAL GAINS FROM THESE PFICS IS INCLUDED WITHIN THIS SCHEDULE K-1.

5 THE CARLYLE GROUP L.P % Series A Preferred Units 2017 SCHEDULE K 1 SUPPLEMENTAL INFORMATION PAGE 2 IRC SECTION 965 DISCLOSURE THE "TAX CUTS AND JOBS ACT" INTRODUCED NEW INTERNAL REVENUE CODE SECTION 965, WHICH IS EFFECTIVE FOR THE LAST TAX YEAR OF A SPECIFIED FOREIGN CORPORATION THAT BEGINS BEFORE JANUARY 1, 2018, AND WITH RESPECT TO UNITED STATES SHAREHOLDERS, FOR THE TAX YEARS IN WHICH OR WITH WHICH SUCH TAX YEAR OF THE SPECIFIED FOREIGN CORPORATION ENDS. A SPECIFIED FOREIGN CORPORATION UNDER SECTION 965 INCLUDES EITHER (1) A CONTROLLED FOREIGN CORPORATION ("CFC") OR (2) ANY FOREIGN CORPORATION IN WHICH A U.S. CORPORATION IS A 10% OR GREATER UNITED STATES SHAREHOLDER, OTHER THAN A PASSIVE FOREIGN INVESTMENT COMPANY ("PFIC") AS DEFINED IN IRC WHILE THE PARTNERSHIP MAY HAVE EITHER A DIRECT OR INDIRECT OWNERSHIP IN A FOREIGN CORPORATION THAT MAY BE CLASSIFIED AS A SPECIFIED FOREIGN CORPORATION AS DEFINED IN IRC 965, BASED ON GUIDANCE AND INFORMATION AVAILABLE TO DATE, THE PARTNERSHIP DOES NOT BELIEVE THAT IT OWNS A SPECIFIED FOREIGN CORPORATION WITH ACCUMULATED POST1986 DEFERRED FOREIGN INCOME WHICH REQUIRES INCLUSION. HOWEVER, TO THE EXTENT YOU BELIEVE YOU ARE A UNITED STATES SHAREHOLDER AS DEFINED IN INTERNAL REVENUE CODE SECTION 951(B) IN ANY OF YOUR INDIRECT HOLDINGS THROUGH THE PARTNERSHIP, PLEASE CONSULT YOUR TAX ADVISORS. STATE INFORMATION THE INCOME INCLUDED ON THE SCHEDULE K-1 IS NOT APPORTIONABLE OR ALLOCABLE TO ANY STATE AT THE PARTNERSHIP LEVEL. THE CARLYLE GROUP L.P. ("PARTNERSHIP") QUALIFIES AS A PORTFOLIO INVESTMENT PARTNERSHIP UNDER THE NYS AND NYC TAX LAWS. THEREFORE, NONRESIDENT CORPORATE UNITHOLDERS GENERALLY WILL NOT HAVE NEXUS IN NYS AND NYC SOLELY AS A RESULT OF INVESTING IN THE PARTNERSHIP. THE CARLYLE GROUP L.P. ("PARTNERSHIP") QUALIFIES AS AN INVESTMENT PARTNERSHIP IN CALIFORNIA UNDER CALIFORNIA REVENUE AND TAX CODE SECS AND THEREFORE, NONRESIDENT UNITHOLDERS GENERALLY WILL NOT BE TAXED ON THIS INCOME AND THEY WILL NOT HAVE NEXUS IN CALIFORNIA SOLELY AS A RESULT OF INVESTING IN THE PARTNERSHIP. PLEASE CONSULT YOUR TAX ADVISOR AS TO YOUR FILING REQUIREMENTS FROM INVESTING IN THE PARTNERSHIP. NON-U.S. TAX CONSIDERATIONS THE INFORMATION ALONG WITH THE ALLOCATION OF GROSS INCOME AND GAINS PROVIDED WITHIN THIS K-1 IS BASED ON US TAX PRINCIPLES. ANY NON-US TAX CONCERNS RELATED TO THE ACTIVITY REPRESENTED HEREIN SHOULD BE CONSIDERED SEPARATELY AND IN CONJUNCTION WITH EACH RESPECTIVE INVESTOR'S RELEVANT TAX ADVISOR. YOU SHOULD CONSULT YOUR TAX ADVISOR TO DETERMINE THE PROPER TREATMENT OF THE ABOVE ITEMS.

6 THE CARLYLE GROUP L.P % Series A Preferred Units 2017 SCHEDULE K-1 SUPPLEMENTAL INFORMATION - PAGE 3 FORM 926 INFORMATION DURING THE TAXABLE YEAR, THE PARTNERSHIP MADE DIRECT AND/OR INDIRECT TRANSFERS OF PROPERTY TO FOREIGN CORPORATIONS THAT MAY REQUIRE REPORTING UNDER IRC SECTION 6038B. THE FOLLOWING INFORMATION IS BEING FURNISHED AS YOU MAY BE REQUIRED TO FILE FORM 926, RETURN BY A U.S. TRANSFEROR OF PROPERTY TO A FOREIGN CORPORATION. PLEASE CONSULT YOUR TAX ADVISOR. NAME OF FOREIGN CORPORATION: CARLYLE HOLDINGS III GP L.P. EIN: ADDRESS OF FOREIGN CORPORATION: COUNTRY OF ORGANIZATION: FOREIGN LAW ENTITY CLASSIFICATION: IS COMPANY A CONTROLLED FOREIGN CORPORATION: C/O THE CARLYLE GROUP L.P PENNSYLVANIA AVENUE N.W. SUITE 220 SOUTH WASHINGTON D.C US CANADA PARTNERSHIP YES DATE OF TRANSFER: 9/6/2017 AMOUNT TRANSFERRED TO THE FOREIGN CORPORATION: TYPE OF PROPERTY TRANSFERRED: 21,983 CASH

7 THE CARLYLE GROUP L.P % Series A Preferred Units 2017 SCHEDULE K-1 SUPPLEMENTAL INFORMATION - PAGE 4 LINE 20Y ADDITIONAL INFORMATION FOR INVESTOR FUND NOT MAKING ELECTION PURSUANT TO TREAS. REG (g)( G Election ) THE PARTNERSHIP DOES NOT INTEND TO MAKE AN ELECTION UNDER TREAS. REG (G) WITH RESPECT TO THE CONTROLLED FOREIGN CORPORATION(S) AND/OR PASSIVE FOREIGN INVESTMENT CORPORATIONS ("PFICs") THAT HAVE ELECTED TO BE QUALIFIED ELECTING FUNDS ("QEFs") LISTED BELOW. IF YOU DO NOT MAKE THE ELECTION UNDER TREAS. REG (G), THE AMOUNTS REPORTED TO YOU BELOW AS SUBPART F INCOME UNDER IRC SECTION 951(A) OR QEF INCLUSIONS UNDER IRC SECTION 1293(A) SHOULD NOT BE INCLUDED AS A COMPONENT OF NET INVESTMENT INCOME AS DEFINED BY TREAS. REG INSTEAD, DISTRIBUTIONS UNDER IRC SECTION 959(D) AND/OR IRC SECTION 1293(C) REPORTED TO YOU BELOW ARE CONSIDERED COMPONENTS OF NET INVESTMENT INCOME AND MAY BE SUBJECT TO TAX PURSUANT TO IRC SECTION PLEASE CONSULT YOUR TAX ADVISOR. CFC NAME: CARLYLE HOLDINGS III GP L.P. CFC EIN: SUBPART F INCOME INCLUDED IN LINE 11: DISTRIBUTIONS FROM CFC:

8 Page: OWNERSHIP SCHEDULE PARTNER NAME: ACCOUNT NUMBER: PARTNER FEDERAL ID/ENTITY: CUSTODIAN FEDERAL ID: PARTNERSHIP FEDERAL ID: Individual This schedule contains the history of units you bought or sold through December 31, 2017, as reported to The Carlyle Group L.P % Series A Preferred Units by your broker or our transfer agent. The taxable allocations shown on the enclosed Schedule K-1 are based on the number of units shown on the schedule and the dates bought and sold. If any information on this schedule is incorrect, please inform us by June 29, You can correct the information by calling us toll free at (855) , by clicking the Update Ownership Information icon under Actions on our Tax Package support website at or by mailing a signed corrected schedule to The Carlyle Group L.P., Attention: Tax Package Support, PO Box , Dallas, TX This Schedule Is Not Proof of Ownership DESCRIPTION TRANSACTION DATE BROKER OR CERTIFICATE NUMBER UNITS AC BUY 9/6/2017 MAN 10, END OF YEAR UNITS 10, IMPORTANT NOTICE: The information on the enclosed schedules is provided for your general assistance. It is not intended to be, nor should it be, construed as tax advice. You are urged to consult your tax advisor with any questions. ACKNOWLEDGMENT FOR CORRECTIONS ONLY The information reported on this schedule, as corrected, accurately and completely presents my ownership history through 12/31/17. Signature Daytime Phone Date